About this programme
T-Fund is a co-investment initiative of the Telangana Government (via Department of IT, Electronics & Communications) and T-Hub, designed to support early-stage technology startups in Telangana. T-Fund co-invests alongside established angel investors, angel networks, and venture capital firms in equity, equity-linked instruments, and convertible debt instruments. The fund aims to help startups accelerate product development, validate markets, and scale from idea to impact. T-Hub manages the fund with an Investment Advisory Committee of industry experts, government representatives, and investors.
This is equity funding — the investor (often through a fund) takes a stake in your company in exchange for capital, rather than lending or granting money. You give up some ownership; you don’t repay it like a loan. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
How it works
T-Fund operates as a co-investment vehicle. Startups seeking funding must have interest from qualified angel investors, angel networks, or VCs. T-Fund co-invests with these established investors using equity, equity-linked instruments, compulsory convertible preference shares (CCPS), or compulsorily convertible debentures (CCDs). The Investment Advisory Committee evaluates metrics and funding amounts. The program targets supporting 100 startups over five years at average ticket size of INR 25 lakhs to 1 crore per startup.
Who can apply
Early-stage technology startups incorporated in Telangana or with Telangana as principal place of business, with at least 50% of qualified workforce based in the state. Sectors include IT, Cleantech, AgriTech, FinTech, HealthTech, AI/ML, IoT, AR/VR, Hardware, Blockchain, and Consumer Tech.
How to apply
- Identify co-investor interest from angel investors, angel networks, or VCs
- Apply through T-Hub's official portal with startup details and co-investment term sheet
- Submit founder information, company incorporation data, product description, industry/subsector, revenue metrics, and funding requirements
- Provide supporting documents including pitch deck and shareholder agreements
- Investment Advisory Committee evaluates and approves funding
Documents you’ll typically need
- Pitch deck
- Term sheet or shareholder agreements from co-investors
- Founder and company details
- Product/service description and industry classification
- Revenue and customer traction metrics
The exact checklist depends on the programme and your specifics.
Frequently asked
What is the investment model of T-Fund?
T-Fund is a co-investment fund that invests alongside established angels, angel networks, and VCs using equity, equity-linked instruments, and convertible debt.
What is the typical ticket size?
The average ticket size is INR 25 lakhs to INR 1 crore per startup.
Where must the startup be located?
Startups must be incorporated in Telangana or have Telangana as their principal place of business with at least 50% of the workforce based in the state.
Reviewed July 2026. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.